INVESTOR RELATIONS REPORT

2Q13 RESULTS

13,178,359.70

2Q13

EARNINGS RELEASE

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2Q13 Earnings Release

São Paulo, Brazil, August 14, 2013 – BRADESPAR [BM&FBOVESPA: BRAP3 (ON), BRAP4 (PN);

LATIBEX: XBRPO (ON), XBRPP (PN)] announces its results for 2Q13.

Corporate Structure – 06.30.2013

100% V/T

BRADESPAR

Antares

Brumado Millennium Valepar

100% V/T

100% V/T

3.6 % V/T 1.7 % V/T

21.2 % V 17.0 % T

53.9% V 33.7% T

%V= % Voting Capital %T= % Total Capital

0.0 % V 0.4 % T

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COMMENTS ON THE COMPANY´S PERFORMANCE

The table below shows the consolidated results, in accordance with accounting practices adopted in Brazil.

Income Statement (R$ thousand)

2Q13 2Q12

(*) Chg. % 1H13 1H12

(*) Chg. %

Equity Income 2,410 236,956 -99.0% 338,777 596,029 -43.2%

Redeemable Shares - Interest 35,844 41,768 -14.2% 72,696 87,011 -16.5%

Dividends from Investments 23,946 39,837 -39.9% 23,946 39,837 -39.9%

Operating Revenue 62,200 318,561 -80.5% 435,419 722,877 -39.8%

Financial Revenue (Expenses) (13,916) (14,926) -6.8% (26,621) (32,245) -17.4%

General and Administrative Expenses (1,263) (1,533) -17.6% (2,609) (3,830) -31.9%

Payroll Expenses (907) (1,289) -29.6% (2,107) (2,199) -4.2%

Other Operating Revenue (Expenses) (19,996) (26,843) -25.5% (19,996) (26,843) -25.5%

Operational Result before Income Tax/Social Contribution 26,118 273,970 -90.5% 384,086 657,760 -41.6%

Income Tax / Social Contribution (12,939) (54,232) -76.1% (12,939) (54,275) -76.2%

Net Income 13,179 219,738 -94.0% 371,147 603,485 -38.5%

(*)Period adjusted for changes in accounting practices

OPERATING REVENUE

As an investment company, BRADESPAR’s operating revenue originates from the equity in the earnings of

Valepar/VALE – which includes dividends and interest on equity – interest rates of redeemable shares

received from Valepar, dividends and interest on equity received from CPFL Energia.

It is worth mentioning that in 2Q13 amid an adverse macroeconomic scenario and a decline of ore and

metal prices, VALE’s financial ratios were significantly affected. In addition, non-recurring accounting

adjustments, which do not affect its financial results, but must be applied according to the generally

accepted accounting practices adopted in Brazil, negatively impacted VALE’s results. BRADESPAR’s

equity in the earnings of subsidiaries, excluding these non-recurring accounting effects was R$358.4

million, totaling an adjusted operating revenue of R$418.2 million.

Including non-recurring accounting adjustments, which did not affect financial results, BRADESPAR

recorded in 2Q13 an operating revenue of R$62.2 million, composed of R$2.4 million equity in the earnings

of Valepar/VALE, R$35.8 million interest rates of redeemable shares received from Valepar and R$24

million dividends received from CPFL Energia.

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FINANCIAL RESULT

BRADESPAR’s financial expenses/income came to R$13.9 million in 2Q13, lower than 2Q12, mainly due to

interest rates of BRADESPAR’s debentures, calculated based on interbank deposit rate (CDI), which

dropped from 2.1% in 2Q12 to 1.8% in 2Q13, impacted by a reduction of benchmark interest rate (SELIC)

in the period.

In the first half of 2013, financial expenses/income was R$26.6 million, down 17.4% on 1H12.

PAYROLL, GENERAL AND ADMINISTRATIVE EXPENSES

In 2Q13, payroll expenses amounted to R$907,000, compared to R$1.3 million in 2Q12. In the first half of

2013, payroll expenses came to R$2.1 million, down 4.2% on same period last year.

General and administrative expenses totaled R$1.3 million in 2Q13 and R$2.6 million in 1H13, down 17.6%

and 31.9% respectively, in the year-on-year comparison.

NET INCOME FOR THE PERIOD

BRADESPAR’s adjusted net income, excluding non-recurring accounting effects was R$369.2 million in

2Q13.

At VALE, in the same period, these non-recurring accounting adjustments include foreign exchange and

monetary losses, currency swap losses, among other, totaling R$6.1 billion, negatively impacting

BRADESPAR’s equity in the earnings of subsidiaries by R$356.0 million.

Considering non-recurring accounting adjustments, which did not affect financial results, BRADESPAR’s

net income was R$13.2 million in 2Q13.

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* Corresponds to 4 Months of operations

636

269

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COMMENTS ON OPERATIONAL INVESTEES

VALE

Among the world’s leading mining companies, VALE is present in more than 30 countries, distributed in five

continents. World leader in the production or iron ore and pellets, the company also operates in the

logistics, coal, manganese, copper and fertilizer segments. Vale is also the world’s second largest nickel

producer, which can be applied in the stainless steel and alloy industries to manufacture aircraft, vehicles,

mining equipment and energy, batteries, among others.

It is worth mentioning that VALE, in July 2013, obtained an installation environmental license for the

Carajás S11D (S11D) iron ore project, a worldwide project of higher quality and lower cost of the global

industry. S11D is the largest project in Vale’s history and also in the iron ore industry, which foresees

investments of nearly US$20 billion. With its startup as of 2017, VALE will reinforce its worldwide leadership

in the iron ore market in volume, cost and quality, thus, this project is a relevant leverage to create value

and increase production capacity.

VALE trades on the BM&FBOVESPA (VALE3 and VALE5), the New York Stock Exchange (NYSE) (VALE

and VALE.P), the NYSE Euronext Paris (VALE3 and VALE5), the Latibex (XVALO and XVALP) and the

Hong Kong Stock Exchange (HKEx) (6210 and 6230).

Adjusted net income, excluding non-recurring effects, came to R$6.9 billion in 2Q13. Including the

accounting adjustments, which do not affect VALE’s financial results, net income was R$832 million.

VALE’s main highlights in 2Q13, in comparison with 2Q12, were:

Operating revenue of R$ 23.4 billion (-6.8%);

Adjusted EBITDA of R$ 10.3 billion (+1.9%); and

Adjusted Net income of R$ 6.9 billion (-14.4%).

CPFL ENERGIA

CPFL Energia is a holding company that generates distributes, and commercializes electricity in Brazil

through its subsidiaries in both the regulated and free markets. It is also largest private group in the

Brazilian electricity segment.

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CPFL Energia’s shares are traded at BM&FBOVESPA Novo Mercado and at the New York Stock

Exchange (“NYSE”) through ADRs Level III, which evidences its adhesion to the highest corporate

governance standards.

Control of CPFL is shared between VBC Energia S.A. (Camargo Corrêa) – 24.4%, BB Carteira Livre I FIA

(Previ) – 30.0% and Bonaire Participações S.A. and Energia São Paulo FIP (Funcesp, Petros, Sistel and

Sabesprev) – 15.1% jointly. The remaining 30.5% corresponds to the free float, 5.3% of which is held by

BRADESPAR.

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CAPITAL MARKET

BRADESPAR’s shares are traded under the symbols BRAP3 (ON) and BRAP4 (PN). It’s preferred shares

are included in the Ibovespa, the BM&FBOVESPA’s most important index, comprising the Brazilian

market’s most liquid companies. Thanks to its excellent corporate governance model, BRADESPAR’s

shares are listed on Level 1 of the Stock Exchange and are included in the Corporate Governance Index

(IGC).

In order to expanding its trading options and increase the liquidity of its shares on the international market,

BRADESPAR’s shares are also listed in euros on the Latibex, the Madrid Stock Exchange’s Latin American

Companies Market through the Depositary Receipt Program (DRP).

Share Price Trends (BM&FBOVESPA) in 2Q13

Source: Economatica.

Prices adjusted for shareholder payments, including dividends and/or interest on equity.

-55%

-45%

-35%

-25%

-15%

-5%

5%

15%

25%

BRAP3 BRAP4 VALE3 CPFE3 IBOVESPA

-8% +10% +13% -13% +7%

2013 -46% -37% -29% -1% -22%

2012

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LIQUIDITY

In 1H13, the average daily trading volume of BRADESPAR preferred stock was R$ 40.4 million.

Source: Economatica.

0.2 0.1 0.1 0.1 0.4 0.5 1.3 0.9 0.4 0.4 0.3 0.3 0.4 1.2

8.1

2.1 1.1 1.5

5.4

14.1

32.2

58.3

47.7

32.8 33.9 35.4

33.9

40.4

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1H13

Average Daily Trading Volume (R$ million)

BRAP3

BRAP4

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PREMIUM / DISCOUNT

At the end of 2Q13, the market capitalization of the interests held by BRADESPAR totaled R$9.8 billion,

without considering any control premium for the interest it holds in VALE. Of this total, 89.4% is composed

of the investment in VALE and 10.6% of the investment in CPFL Energia.

In relation to the market capitalization of the interests it holds in its investee companies, BRADESPAR’s

market capitalization, after deducting net debt of R$ 737 million, represented a discount of 28.2%.

Number of

Shares

% of Total

Capital

Market Value

(R$ thousand)

Market Value

(US$ thousand)

Market Value

(EURO

thousand)

VALE ON (1)

29.10 299,380,600 5.81% 8,711,975 3,932,106 3,022,158

VALE PNA (1)

27.05 3,547,702 0.07% 95,965 43,313 33,290

CPFL-E ON 20.71 50,541,820 5.25% 1,046,721 472,432 363,104

Bradespar's Total Assets Value ( A ) 9,854,661 4,447,851 3,418,552

Bradespar's Net Debt ( B ) (2)

(737,020) (332,650) (255,670)

Bradespar's Cash and Cash Equivalents 247,719 111,807 85,933

Bradespar's Gross Debt (984,739) (444,457) (341,603)

Bradespar's Net Asset Value ( C ) = ( A ) + ( B ) 9,117,641 4,115,201 3,162,882

Bradespar's Market Capitalization ( D ) 6,546,272 2,954,627 2,270,882

Common Shares (BRAP3) 16.00 122,523,049 1,960,369 884,803 680,046

Preferred Shares (BRAP4) 20.20 227,024,896 4,585,903 2,069,824 1,590,836

Difference between net asset value and market capitalization ( C ) - ( D ) 2,571,369 1,160,574 892,000

DISCOUNT (3)

28.2%

(1) The number of VALE shares were calculated by considering the indirectly owned stakes in Valepar.

(2) Net Debt on 06/28/13.

(3) ((Bradespar's Market Cap)/(Asset Value + Net Debt)) - 1

CompaniesPrice

(R$/share)

Bradespar's Stake

Bradespar's Net Asset Value X Bradespar's Market Capitalization (closing prices on June, 28)

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The discount between BRADESPAR’s net asset value and its market capitalization, which stood at 8.9% in

June 2012, increased to 15.1% in December 2012 and reached 28.2% at the end of June 2013.

Note: Discount on last business day of each month.

8.9% 8.8%

11.4%12.7% 12.9%

15.7%15.1%

13.7% 13.8%

16.6%

21.4%22.3%

28.2%

Ju

n-1

2

Ju

l-12

Au

g-1

2

Sep

-12

Oct-

12

No

v-1

2

De

c-1

2

Jan

-13

Feb

-13

Ma

r-1

3

Ap

r-13

Ma

y-1

3

Ju

n-1

3

Discount between BRADESPAR’s Net Asset Value and Market Capitalization

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SUBSEQUENT EVENTS

FIFTH ISSUE OF DEBENTURES

On July 4, 2013, BRADESPAR conducted its fifth issue of debentures, non convertible into shares, in the

total amount of R$1 billion, in a single series to mature in 732 days, as of the issue date totaling 100,000

debentures, with unit value of R$10,000.00. Debentures will earn interest at 105.3% of accumulated

variation of DIs (one-day interbank deposits) daily average rates - “over extra group”, calculated and

released by CETIP (OTC Clearing House), basis of 252 business days, expressed as annual percentage

(“DI Rate”), incurred on the debentures’ unit face value.

FINANCIAL SETTLEMENT OF THE THIRD ISSUE OF DEBENTURES SECOND SERIES

On July 4, 2013, the maturity date of the third issue of debentures second series, BRADESPAR made full

redemption by applying the funds raised through the fifth issue of debentures.

FINANCIAL SETTLEMENT OF THE FOURTH ISSUE OF DEBENTURES

On July 4, 2013, the maturity date of the fourth issue of debentures, BRADESPAR made full redemption by

applying the funds raised through the fifth issue of debentures.

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IR CONTACT

For further information, please contact the Investor Relations Department:

Luiz Maurício Leuzinger

Renato da Cruz Gomes

Gustavo Bonetti

Daniel Picerni Sarmento

Phone: +55 11 2178-6300

Fax: +55 11 2178-6315

E-mail: bradespar@bradespar.com

Web site: www.bradespar.com

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APPENDIX – BALANCE SHEET AND FINANCIAL INFORMATION

Income Statement (R$ thousand)

2Q13 2Q12

(*) Chg. % 1H13 1H12

(*) Chg. %

Equity Income 2,410 236,956 -99.0% 338,777 596,029 -43.2%

Redeemable Shares - Interest 35,844 41,768 -14.2% 72,696 87,011 -16.5%

Dividends from Investments 23,946 39,837 -39.9% 23,946 39,837 -39.9%

Operating Revenue 62,200 318,561 -80.5% 435,419 722,877 -39.8%

Financial Revenue (Expenses) (13,916) (14,926) -6.8% (26,621) (32,245) -17.4%

General and Administrative Expenses (1,263) (1,533) -17.6% (2,609) (3,830) -31.9%

Payroll Expenses (907) (1,289) -29.6% (2,107) (2,199) -4.2%

Other Operating Revenue (Expenses) (19,996) (26,843) -25.5% (19,996) (26,843) -25.5%

Operational Result before Income Tax/Social Contribution 26,118 273,970 -90.5% 384,086 657,760 -41.6%

Income Tax / Social Contribution (12,939) (54,232) -76.1% (12,939) (54,275) -76.2%

Net Income 13,179 219,738 -94.0% 371,147 603,485 -38.5%

(*)Period adjusted for changes in accounting practices

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ASSETS (R$ thousand)

06.30.2013 06.30.2012

CURRENT 1,214,052 934,069

Cash and Cash Equivalents 248,960 219,386

Dividends Receivable - Redeemable Shares 22,635 27,791

Interest on Equity Receivable 592,069 506,828

Preferred Shares Redeemable 349,970 179,740

Other Amounts 418 324

NON-CURRENT ASSETS 10,106,434 10,455,291

Long Term 1,759,410 2,328,515

Preferred Shares Redeemable 553,697 903,667

Financial Assets Available for Sale 1,046,721 1,283,762

Recoverable Taxes 137,198 140,919

Judicial Deposits 21,794 167

Investments 7,650,606 7,715,339

Investments (Presumed Reserve) 696,389 411,403

Fixed Assets 29 34

TOTAL 11,320,486 11,389,360

LIABILITIES (R$ thousand)

06.30.2013 06.30.2012

CURRENT 1,028,964 511,176

Provision for Dividends and Interest on Equity 4,443 109,028

Debentures Payable 985,650 321,743

Provision for Income Tax and Social Contribution 12,887 54,025

Other Obligations 25,984 26,380

NON-CURRENT LIABILITIES 747,459 1,345,815

Debentures Payable - 566,450

Provision for Income Tax and Social Contribution 445,571 526,165

Provision and Legal Obligations 301,888 253,200

SHAREHOLDERS’ EQUITY 9,544,063 9,532,369

Capital Stock 4,100,000 3,900,000

Profit Reserve 3,945,248 3,888,545

Adjustment to equity evaluation 1,338,949 1,139,997

Accrued Profit 379,877 603,827

Interest on Equity/Dividends Interim -220,011 -

TOTAL 11,320,486 11,389,360